Questions about trading Put options.

timer Asked: Sep 28th, 2015

Question description

Please Read The assignment Before You Bid. (Trading options knowledge needed)  

I need to answer several questions about trading we did in a simulation game for trading.

I attached at the end the results from my account. And here are the questions that need to be answered:

  1. What was your overall gain/loss during the project?

  2. What was your strategy?

  3. How did the following affect your profits: ?

  • Trading commissions

  • Bid/Ask spread

  • “Moneyness” of the option (how far in/out of the money)

  • Time to expiration of the option

  • Price of the underlying equity

  • Volatility of the underlying

  1. If, instead of using options, you had used your capital to buy or sell short the underlying, would you have made a greater or lesser profit?




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